“With reference to our letter dated March 25, 2021 on the captioned subject, RBI vide letter Ref.No.DoR.HOL.No.S4688/16.01.075/2022-23 dated October 21, 2022, has lifted the restriction on branch opening with effect from October 21, 2022, as the Bank’s shares were listed in the Stock Exchanges on September 15, 2022,” read a TMB letter.
The restrictions on opening new branches will be rescinded with effect from October 21, with the bank’s shares being listed just a month earlier on the stock exchange.
RBI had placed the ban on TMB in 2019 after the bank’s shareholders decided to raise authorized share capital to Rs 500 crore. The central bank objected to the bank not raising its subscribed capital to at least half of the authorized capital as required.
With the restrictions now gone, the Tamil Nadu-based bank is likely to expand its branches beyond the southern reaches of the country.